Do they also tax the retirement pay of the state workers that have retired from the state payroll?
If not, the taxing of other retirements may be disallowed.
Here in Alabama, my military retirement cannot be taxed by the state, simply because the state does not tax retired state workers.
A court case from a few years back. Don't know all the details, but I do know that the state had to refund a few million to those that they had previously collected from.
Check it out, it may have been a precedent-setting case with application to other states.
This happened in Virginia,and Va had to make refunds to all the retired military and civil service workers they had been taxing.